Couple get prison for role in tax evasion

Friday

Nov 30, 2012 at 6:00 AM

A Rhode Island husband and wife were sentenced this week to prison for their role in a tax evasion scheme that involved New Hampshire income tax resisters William S. Dion and Catherine Floyd, both formerly of Uxbridge.

U.S. District Judge Dennis F. Saylor in Boston sentenced Gail Thorick to seven months in prison followed by 17 months of supervised release with seven months of that time to be served in home confinement. Her husband, Myron Thorick, received two years’ probation, with the first year to be served in home confinement. Judge Saylor also ordered the Thoricks to each pay $595,000 in restitution to the Internal Revenue Service.

Earlier this month, Judge Saylor sentenced Kenneth S. Alcock of Westboro to 12 months and a day and ordered him to pay $201,000 in restitution. Mr. Alcock pleaded guilty in January to tax evasion and conspiring to defraud the federal government. He testified against his alleged co-conspirators in April, helping to convict them of similar charges.

Mr. Alcock’s brother Gary, also of Westboro, owned and operated G&K Trucking Co., a trash hauling business, as well as Bark Mulch & Loam Co., a landscaping business. Both companies were operated out of the same site in Shrewsbury.

Under the guidance of Mr. Dion and Ms. Floyd, the Alcocks set up a paper company called Alex Management to divert and hide business receipts — to make Gary Alcock’s businesses fraudulently “disappear” on paper and evade the Internal Revenue Service.

The brothers used Contract America, a business run by Mr. Dion, Ms. Floyd and Charles Adams of Norwood, to pay Gary Alcock’s employees under the table without withholding or paying Social Security, Medicare or income taxes.

Judge Saylor sentenced Mr. Dion to 7 years in prison, Ms. Floyd to 5 years, and Mr. Adams to 4 years.